What are small and big residential loans?
- Spock (rhp)Lv 74 weeks ago
jumbo, in America, refers to any mortgage that is over the maximum size for FHA/VA. these are also included in 'non conforming'. small is designated by the lender ... there are fixed costs associated with making a mortgage loan that do not vary with size of loan ... on a small loan [perhaps under $100,000] the relative size of these costs makes a difference and lenders either discourage making such loans or charge higher up front fees ["points"] to recover the, percentage wise, higher costs. [examples of such costs: title search. closing agent service.]